Blue Cross Blue Shield Says Tax Law Means Lower Premium Hikes
With the new federal tax law, Blue Cross Blue Shield of North Carolina is going to save a lot of money. The company says it will put the $40 million tax savings and an additional $10 million of other money into community health programs around the state.
The money will go to an opioid residential treatment center, a family justice center, a physician assistant education program, and for early childhood development programs. Some of that money will also go to $1,000 bonuses to non-executive employees. The company's chief executive Patrick Conway says future savings will go toward stemming health insurance premiums for customers, although that does not mean rates will go down.
“We are going to build in future tax savings and we build in our capital position into rate increases for next year," Conway said. "Our goal is to have rate increases as low as possible next year.”
Conway says the plan is to have premium rate increases lower than 10 percent. This year, Blue Cross Blue Shield of North Carolina increased premiums on average 14 percent.